New TSMC chip factories planned for Europe
Taiwan Semiconductor Manufacturing Co (TSMC) is building a new factory in Germany to accommodate continued interest and continued investment in AI.
The news comes as part of the company’s efforts to expand globally, including in Europe, the US and Asia – a move confirmed by Taiwan’s Minister of the National Science and Technology Council, Wu Cheng-wen (via BloombergTV).
Wu confirmed that construction of a factory in Dresden, Germany, had already begun and that opening more factories was already on the agenda.
Taiwan is building more chip factories in other regions
The minister confirmed: “(TSMC is) also already planning the next few factories in the future for different market sectors.”
TSMC, the world’s largest chipmaker, is reportedly investing billions in building new manufacturing sites in the US, Japan and Germany for a handful of reasons, including meeting demand for high-performance components and mitigating risks associated with with the ongoing geopolitical tensions in China, which has resulted in import and export restrictions and tariffs in recent years.
The company’s $10.9 billion chip manufacturing facility in Dresden is expected to be operational by the end of 2027 thanks to around 50% financing from state subsidies.
Referring to ambitions to work more closely with the European Union, Wu hinted at opportunities from European next-generation chip designers such as Germany’s Black Semiconductor and the Netherlands’ Axelera AI. However, US pressure could continue well beyond the upcoming current elections.
We added: “In the short term, it might be painful for Taiwanese companies because it will be more expensive if they move there… But in the long run, it might be good for them, from my point of view, because they can improve themselves.”
Moreover, relations between Taiwan and the Czech Republic have strengthened in recent months, which could mean an open door to Europe for TSMC.